June 01, 2017

Trampoline companies settle with FTC over fake reviews

With the availability of the Internet, consumers are turning more and more to reading online reviews of products and services before they buy.

But caution is advised. Some of the reviews offered are fake.

Two brothers have agreed to settle Federal Trade Commission charges that in marketing and selling their trampolines, they deceived consumers by directing them to review websites that claimed to be independent but they weren’t. They didn’t disclose that one of the brothers posted online product endorsements without disclosing his financial interest in the sale of the products.

Son “Sonny” Le and Bao “Bobby” Le are barred from engaging in deceptive behavior in the future and must clearly disclose any connections between a reviewer or endorser and the product being reviewed.

Working together and using several fictitious business names, the Les marketed and sold Infinity and Olympus Pro trampolines on several websites, according to the FTC’s lawsuit. These sales websites featured logos from supposedly independent review entities, including “Trampoline Safety of America,” the “Bureau of Trampoline Review,” and “Top Trampoline Review.”

Consumers who clicked on the logos were directed to the websites of those reviewing organizations, which claimed to provide objective information, including unbiased “expert reviews” of specific brands and models, as well as ratings based on safety, performance, and other qualities. Each review site recommended the Les’ Infinity and Olympus Pro trampolines.

The review sites weren’t what they appeared nor were they unbiased, as all were owned and run by the Les. The FTC alleges that the logos were fake, as were claims on the sites stating, for example, that Trampoline Safety of America – one of the purported reviewing entities – “is a third-party organization involved in studying the technical aspects of all the major trampoline sites in America” comprised of structural engineers, trampoline gymnastic coaches, and professionals whose goal was to educate the public about “the safeties of trampolines.”

The FTC also charged in its lawsuit that Bobby Le posted online reviews that appeared to be from ordinary trampoline owners – praising the “strong frames” and other attributes of the Les’ products, while disparaging other brands – without disclosing his connection to the products he was promoting.

The proposed order settling the FTC’s charges prohibits the Les from making any of the misrepresentations alleged in the lawsuit and requires them to disclose clearly any connection between an endorser and the company or anyone associated with it. The order requires that if the Les review a product that they sell or that competes with one they sell, that they clearly disclose this fact.

It can be difficult to tell if an organization is independent and unbiased. When searching for reviews online, look for a wide variety of websites. Be skeptical. And, if you find yourself on a review site that you’ve never heard of before, broaden your search to ensure that the reviews are independent.